Minister Luhut Sets Conditions for Tesla to Invest in Indonesia

TheIndonesia.id - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stressed that Tesla had to fulfill requirements if it intended to invest in Indonesia. Luhut said the electric car manufacturer from the US had just expressed interest in returning to Indonesia after previously canceling.

"This morning, I got a call from America. Tesla said it wanted to make a deal with us," he said during the 2022 Domestic Product Shopping Closing Ceremony which was broadcast online from Bali, Thursday, March 24, 2022.

Luhut also firmly reminded that two years ago the Elon Musk company had expressed interest in developing lithium batteries in Indonesia. However, the plan was canceled because the company was considered to be dictating too much.

"I said, 'Hey you. It was two years ago that you called me wanting to make a lithium battery. You all want to dictate, I said, 'Hey you cannot do this. Today is different. We have to be the same'. I said 'You can't do that anymore. This country is not a banana republic! This country is a big country!" Luhut's stated.

Indonesia already has business agreements with electric vehicle battery companies from China and South Korea, namely CATL and LG. Both are claimed to hold nearly 55 percent of the world's lithium battery market.

The cooperation with the two companies is believed to make Indonesia a global player for lithium batteries. Moreover, in 2024, Indonesia is targeted to start producing lithium batteries.

Luhut reminded that if Tesla wanted to enter, the company had to comply with the conditions given by the Indonesian government. This, Luhut continued, also applies to other investors, including China. Several conditions have been requested by the Indonesian government to foreign investors, including technology transfer, environmentally friendly technology, mandatory education of local workers, and providing added value.

"I don't want you to come for a deal, not you (Tesla) make conditions for us. I make conditions for you because that's what I did to China. China has never given conditions to me, I (who) gave conditions. If you want what if we have to go B to B? It should have technology transfer (agreement), it should be first class technology, (and) it should have to be environmentally friendly. (China) said okay. Deal!" Luhut stated.